The 11 News I-Team reported on the state's action against attorney Michael A. Perry and his company in May. Perry was adamant that the Department of Labor, Licensing and Regulation wrongfully ordered him to stop what he was doing.

But Perry is claiming a Baltimore City judge's ruling proves the state was wrong.

When loan modification signs started appearing at various street corners in Baltimore City and Baltimore County, they sparked the I-Team's interest, as well as that of the state.

The Maryland DLLR didn't think the signs were legal. Its financial regulation division issued a cease and desist order and fined Perry and his company, Perry and Associates, nearly $500,000. The DLLR claimed the business was unlicensed and was charging up-front fees of at least $1,500 before rendering any services.

"If you can't collect money up front, even if you put it in your own escrow account, nobody wants to do the work," Perry claimed, saying his firm was exempt and that the law requires a license for credit repair, not mortgage modifications.

He challenged the findings and took the state to court.

This week, Baltimore City Circuit Court Judge Martin Welch agreed with Perry and ordered the decision of the Maryland Office of the Commissioner of Financial Regulation be reversed.

"I was elated, absolutely elated," Perry said. "Now, an attorney in Maryland can do modifications without a credit repair license, without supervision from DLLR, and they can proceed without any apprehension from the state of Maryland coming in and shutting them down."

In response to the ruling, the Office of the Commissioner of Financial Regulation told 11 News it "has decided not to appeal this case." It also said, "The Circuit Court decision is limited to Mr. Perry and his company and will have no precedential value with regard to other enforcement actions brought by the Office of the Commissioner."

When asked if he would start doing loan modifications and charge up-front fees again, Perry told the I-Team he hasn't decided, but the ruling gives him every right to proceed.